Boeing announced on November 15, 2024, that it will begin issuing layoff notices this week, affecting workers as part of its plan to cut 17,000 jobs, approximately 10% of its global workforce. The move aligns with the company’s broader strategy to stabilize its finances and focus on key priorities.
According to a report from Reuters, impacted employees in the United States will receive Worker Adjustment and Retraining Notification (WARN) notices in compliance with federal regulations, which require a 60-day notice period before employment termination. These workers will remain on Boeing’s payroll until January 2025. Boeing had previously communicated its intention to issue these notices in mid-November.
“As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities,” Boeing stated. “We are committed to ensuring our employees have support during this challenging time.”
The layoffs come as the company works to recover from a series of setbacks. Production of Boeing’s flagship 737 MAX, a critical revenue driver, was severely affected by a strike involving over 33,000 U.S. West Coast workers. The strike, which began on September 13, 2024, halted most commercial jet production until its resolution on November 5. Workers have since returned to assembly lines in the Seattle area, enabling the gradual resumption of 737 MAX production.
The 737 MAX program is especially important to Boeing’s financial health. In late October, the company secured over $24 billion in funding to stabilize its finances and preserve its investment-grade rating.
Impact of Layoffs on Employee Morale
Sources familiar with the situation described declining employee morale, exacerbated by spending and travel cuts imposed by the company. Many workers are reportedly awaiting individual notifications from managers via phone or virtual meetings to learn about their employment status.
Boeing’s financial challenges began earlier this year when a 737 MAX jet experienced a mid-air incident on January 5, 2024. Since then, the company has faced increased scrutiny from regulators regarding its safety culture. Additionally, a leadership shakeup occurred with the appointment of new CEO Kelly Ortberg.
